What Happened?
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut.
The positive sentiment followed comments from New York Federal Reserve President John Williams, a voting member of the rate-setting Federal Open Market Committee (FOMC), who indicated he sees room for further policy easing. Following his remarks, the probability of a December rate cut surged from 39% to 71%, according to the CME FedWatch Tool, causing Treasury yields to fall. Lower interest rates can be particularly beneficial for growth-oriented sectors like software, as they increase the present value of future earnings. This renewed hope provided a boost to the sector, which had recently faced pressure from concerns over high valuations in artificial intelligence.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Data Analytics company Domo (NASDAQ:DOMO) jumped 2.6%. Is now the time to buy Domo? Access our full analysis report here, it’s free for active Edge members.
- Payments Software company Marqeta (NASDAQ:MQ) jumped 2.7%. Is now the time to buy Marqeta? Access our full analysis report here, it’s free for active Edge members.
- Advertising Software company The Trade Desk (NASDAQ:TTD) jumped 2.9%. Is now the time to buy The Trade Desk? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company Commvault (NASDAQ:CVLT) jumped 2.7%. Is now the time to buy Commvault? Access our full analysis report here, it’s free for active Edge members.
- E-commerce Software company Shopify (NASDAQ:SHOP) jumped 2.9%. Is now the time to buy Shopify? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Shopify (SHOP)
Shopify’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 2% on the news that the company partnered with Visualsoft to enhance connected retail experiences. The two companies released research showing a strong consumer preference for a unified shopping journey. The survey found that 88% of UK shoppers already purchased from the same retailers both online and in-store, underscoring the need for seamless integration between physical and digital storefronts. A Shopify executive noted that modern commerce was about removing barriers between channels to create a single, connected experience for consumers. This move positioned Shopify to better serve retailers aiming to meet the evolving habits of their customers.
Shopify is up 37.5% since the beginning of the year, but at $147.90 per share, it is still trading 17.4% below its 52-week high of $179.01 from October 2025. Investors who bought $1,000 worth of Shopify’s shares 5 years ago would now be looking at an investment worth $1,509.
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